Page 45 - Investment Advisor January/February 2022

and 16.1% in 2023 before flattening to All companies in the segment, LPL, meanwhile, also has a “signifi-
16% in 2024 and 2025, according to meanwhile, are investing significantly cant advisor force,” but Aite-Novarica
Aite-Novarica. in technology to help their advisors Group projects “attrition in the near
Self-clearing retail BDs’ client assets compete with more advanced digital future as the firm focuses on upping its
grew 17% in 2020 to $6.1 trillion, the capabilities available at the wirehouses productivity amid increased competi-
report said. Edward Jones represented and online brokerages, according to the tion,” the report said.
25% of those total assets for the seg- report. Aite-Novarica predicted that
ment, while LPL Financial, ADVISOR BREAKAWAYS
Raymond James and Ameriprise The wirehouse channel is The COVID-19 pandemic-driv-
accounted for a combined 41%, en shift to working from home
“demonstrating substantial con- expected to continue losing more “accelerated secular trends
centration within this space,” market share than any other driving advisor breakaways,”
the report said. the report noted.
Companies in this broker financial wealth management “Disconnected from the
segment have traditionally office, many wirehouse advi-
grown via acquisitions, the segment through 2025 after being sors reconsidered the value of
report noted. “As growing num- the only channel in the industry their firms’ operational sup-
bers of advisors reach retire- port — especially at the cost of
ment age, the segment will need to see a decline in market share sizable payouts and taking into
to shift from inorganic growth every year since 2016. account the required adherence
to optimization, focusing on to rigid product and compliance
advisor productivity and new policies,” according to Aite-
client acquisition,” according to — Aite-Novarica Group report Novarica.
the research firm. Meanwhile, “halfway house”
The large independent BDs have strategic transition will play a key role RIA affiliation models from large
rolled out affiliation models that were in the flattening of growth over the next independent BDs including LPL and
developed to attract high-performing five years. Raymond James, as well as turnkey,
advisory practices, “touting personal- Among the large, non-wirehouse BDs, modular platforms available to inde-
ized back-office support functions and Edward Jones has the largest headcount pendent RIAs through RIA aggrega-
RIA offerings, hoping to retain their ser- and, with its “franchise model and tors, are providing advisors with
vices (and production) in years to come,” strong brand equity, continues to grow,” “multiple flavors of independence,” the
Aite-Novarica said. according to the report. report said.

How a Top Raymond James vice president of the Raymond James &
Associates Private Client Group, where
Wealth Exec Gives Back, Unwinds he was responsible for leading initiatives
focused on revenue growth, efficiency
Private Client Group President Scott Curtis enhancement, product development, risk
mitigation and service improvement. He
discusses his charitable activities and which is also a member of the Financial Industry
market indicators he’s watching. Regulatory Authority Membership
Committee and serves on the board of
s president of the Raymond James Curtis is based in Florida’s Tampa Bay the Financial Services Institute.
A Private Client Group, Scott Curtis area and has been with Raymond James Outside the financial sector, he serves
leads the firm’s domestic wealth man- since February 2003. Prior to his current on the boards of the nonprofit Chi Chi
agement businesses, which include role, he served as president of Raymond Rodriguez Youth Foundation and the
Adobe Stock pendent financial advisors and generate firm’s independent advisor business. Way Suncoast.
local social services organization United
more than 8,000 employee and inde-
James Financial Services, directing the
In late December, via email, we asked
From 2006 to 2012, he was senior
more than 70% of overall firm revenue.
JANUARY/FEBRUARY 2022 INVESTMENT ADVISOR 43